Cyclical Stocks May Be Getting Pricey

by: Eddy Elfenbein

Eddy Elfenbein submits: Look at the huge split in Thursday's trading between Cyclical stocks (^CYC) and Consumer stocks (^CMR) - click to enlarge:

cyclical stocks

That's unusually large. Maybe the economy is in better shape than we realize.

I still think the cyclicals are getting a bit pricey here. Many of these stocks were good buys four years ago, but are now near the top of their range. Here's a graph of the Morgan Stanley Cyclical Index divided by the S&P 500:

cyclical stocks